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VIENNA (Reuters) – The European Union will conclude an agreement with Britain on Brexit in November if it does not do so this month, said European Commission President Jean-Claude Juncker, Austrian newspapers.
PHOTO FILE: The President of the European Commission, Jean-Claude Juncker, visits the informal meeting of EU leaders in Salzburg, Austria, on 20 September 2018. REUTERS / Lisi Niesner
Juncker, whose optimism was echoed in remarks by European Council President Donald Tusk on Saturday, said the potential for rapprochement has increased in recent days, confirming that sources diplomats told Reuters.
Brexit's European negotiators believe that an agreement with Britain over the block's exit is "very near," sources told Reuters. A compromise on the most contentious issue – the future Irish border – could be in preparation, although details are scarce.
"We are not here yet, but our desire to reach an agreement with the British government is not broken," Juncker told Der Standard, Kurier and Der Falter.
On Friday, Brexit European negotiators told the ambassadors of the remaining 27 states in the bloc that there was no breakthrough on the Irish issue and that much would depend on what their British counterparts would bring to Brussels next week.
"We have to get out of this scenario without agreement. That would not be good for Britain or for the rest of the (European) Union, "said Juncker.
Britain and the EU are lobbying for the divorce agreement and the post-Brexit deal in time for two summits of leaders to be held on 17 and November 18 and November 17 and 18.
"My assumption is that we will reach an agreement that will meet the terms of the withdrawal treaty," said Juncker, adding that it was not possible to predict whether there would be a conclusion to the negotiations on the Brexit in October.
"Otherwise, we'll do it in November."
Tusk also said that it was possible to conclude an agreement with Britain on the departure of the European Union by the end of 2018.
"I am hopeful to be certain that we will come to an agreement both on the exit and on the best possible relationships in the future … I hope that we will be able to make the best of both worlds. it will be possible to avoid heavy losses on both sides, "he said on the sidelines of a conference in Krakow, Poland.
"We will try for that in October … and I think there is a chance to have an agreement by the end of the year," he said. added.
Juncker told Austrian newspapers that a political declaration on future relations between Britain and its former European partners was needed to accompany the Brexit deal.
"You absolutely can not separate the withdrawal treaty and the declaration of future relations between the United Kingdom and Europe," he said.
ITALIAN BUDGET
In addition to Brexit, one of the biggest problems facing the leaders of the European Union is the approach of the new Italian government with regard to public finances.
Asked about Italy's recent budget plans, Juncker said it was up to Italian policymakers to find rules and measures that would allow Italy to meet the agreed budgetary targets.
"We will evaluate the Italian budget … and propose modifications if necessary," he added.
The Italian government unveiled this week the essentials of its multi-year expansionary fiscal plan, raising the budget deficit target to 2.4% of gross domestic product by 2019.
The deficit is expected to gradually decrease over the next two years to 2.1%, then 1.8%, while remaining well above the targets previously agreed with the European Commission.
The objectives are "a source of grave concern", the European Commission said in a letter to the Italian Minister of Economy, Giovanni Tria, in which he asked Rome to ensure that the budget is "in line with common budgetary rules ".
Reportage of Kirsti Knolle; Additional report by Wojciech Zurawski in Krakow; Edited by Andrew Heavens and Alexander Smith
